Bearish bets against shares of Z.AI Co. and MiniMax Group Inc. have soared to records ahead of their earnings reports, highlighting growing investor worry over China’s heated AI rivalry.

Hang Seng Indexes Co. is adding Hua Hong Grace Semiconductor Ltd. and Weichai Power Co. to Hong Kong’s equity benchmark, the index compiler said following its quarterly review.

China’s materials stocks have surged to the top of the market over the past month, as rallies in gold and copper transformed one of this year’s lagging sectors into a market leader.

Hang Seng Indexes Co. may add chipmaker Hua Hong Grace Semiconductor Ltd., AI-related firm Kingboard Laminates Holdings Ltd. and miner Zijin Gold International Co. to Hong Kong’s equity benchmark, according to analysts.

Taiwanese stocks are gaining favor over South Korea’s on steadier earnings prospects, as the two AI-bellwether markets look to recover from July’s rout.

Asian stocks posted their biggest gain in nearly four months as investors piled into chipmakers, after blockbuster earnings from major tech firms reinforced optimism over AI demand.

Asian stocks slumped, putting the regional benchmark on course for a technical correction, as a selloff in chipmakers deepened.

Chinese daily stock turnover dropped to the lowest level in over three months, as investors shun the nation’s technology sector.

Hong Kong stocks’ valuation discount to their mainland-listed counterparts is widening, driven largely by liquidity strains and Beijing’s crackdowns on capital outflows.

Shares of China’s major airlines are lagging Cathay Pacific Airways Ltd. by nearly 50 percentage points this year, as analysts expect weaker profits to persist on lackluster domestic travel demand.